Embry - Gold & Silver Smash & The Derivatives Time Bomb

Today a man who has been involved in the financial markets for 50 years discussed the gold and silver smash and why the orchestrated smash is essential to avoid igniting a derivatives time bomb.  Below is what John Embry had to say in this timely interview.Embry: 

“On a day like today I’m focused on the takedown of gold and silver, which got under way during the access market in Asia and picked up speed as we passed into the Comex today.  Gold is getting pounded and the idea that this is profit-taking or long liquidation is preposterous....

“It’s the same old game, and I knew it was coming when I saw that the CME had reduced margins on copper, gold, and silver.  It just gave the big shorts, the bullion banks, more ammunition to throw at the market because they are in trouble.

The bullion banks are short enormous quantities and the technical action in gold is improving by the day.  So gold was starting to look like it was going to run away, particularly the shares.  The shares have been leading the way for gold and silver.  But these guys are not taking this sitting down.  This is the endgame and so it’s 'anything goes.'

But what really bothered me this weekend was Doug Casey saying allegations that gold and silver manipulation are occurring are ‘ridiculous,’ and ‘anybody who believes that doesn’t understand markets.’  I take that as a personal affront.  I’ve been around markets on a day-to-day basis longer than he has, and I can guarantee you I can identify a market that is being manipulated.  And both the gold and silver markets are classic examples of manipulated markets.

This manipulation in gold and silver has been going on for 50 years.  Back in the 1960s we had the London Gold Pool at work, but at least then it was overt.  They were open about the manipulation.  We knew what they were doing -- they were artificially keeping gold at the official rate of $35 an ounce.

Well, we see how that ended.  By suppressing it for long enough, the price exploded in the 1970s.  Now the manipulation is covert.  Nobody will admit anything.  I would strongly advise anybody who doesn’t believe that to read Dimitri Speck’s book, 'The Gold Cartel.'  Dimitri did exhaustive work and actually identified a new round of manipulation that began in 1993.  He identified recurrent trading patterns that began at that time.  So for Casey to come out and say something as ludicrous as what he did is an affront.  It really is appalling.

I am also focused on the bank in Portugal that is in trouble.  Now supposedly everything is fine in Europe and there is nothing to worry about.  But it’s like the boy with his finger in the dike.  Eventually you run out of fingers.  So I think this bank in Portugal is just another black swan and there will be more to come.”

Embry added: “I think it’s important that people ignore these gold predictions from banks like Goldman Sachs because it’s in their interest to denigrate gold.  If gold and silver prices truly reflected what is going on in monetary policy, the whole scam of zero-based interest rates and quantitative easing would be exposed, inflation would be revealed, interest rates would soar, and this would trigger the derivative bomb that is polluting the financial world.

This would be the endgame for banks like Goldman Sachs.  That’s why they are knocking gold -- it’s all about survivability.  Gold and silver remain the single best investment opportunities on the planet at this time, particularly the shares.  I am encouraged that there has been considerable action in some of the juniors that I follow.

Volumes are picking up and the prices are becoming robust.  This is important because it’s a precursor to a sharp move higher in gold and silver.  I don’t think people have any idea how far this move is going to go.  It’s going to go a lot higher than most rational minds today can figure.  This coming move has to do with paper money, which is being debased everywhere on the planet.

The central planners are trying to obscure this with all sorts of propaganda, but they have to keep gold and silver suppressed for as long as possible or the whole debt structure is going to fall in on their head.  So you want to own as much gold and silver as possible ahead of the conclusion of the endgame and that includes the shares because they are really cheap.”